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CAPM Practice: Determine how to document project controls of predictive, plan-based projects

Question 72 of 85 in Determine how to document project controls of predictive, plan-based projects

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A project manager uses variance thresholds for monitoring. The threshold is set at ±10% for schedule variance. Which situation triggers a formal review?
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Correct answer: SPI = 0.87 (13% below plan)

Explanation

A ±10% threshold means the project manager initiates a formal review when performance is more than 10% off plan in either direction. SPI = 0.87 represents a 13% shortfall (below the -10% threshold), triggering a formal review. SPI values of 0.95, 1.05, and 1.08 are all within the ±10% window and would not trigger a formal review under this policy.

**Why not A:** SPI = 1.05 represents 5% above plan, which is within the plus or minus 10% threshold. This performance level does not trigger a formal review because it falls within the acceptable range of normal variation.

**Why not B:** SPI = 1.08 represents 8% above plan, which is still within the plus or minus 10% threshold. While favorable, this level of positive variance does not exceed the defined threshold that would trigger a formal review.

**Why not C:** SPI = 0.95 represents 5% below plan, which is within the minus 10% threshold. While unfavorable, this level of negative variance is within the acceptable range and does not trigger the formal review mechanism.

Key Concept

This question covers Determine how to document project controls of predictive, plan-based projects under Determine how to document project controls of predictive, plan-based projects (Predictive, Plan-Based Methodologies).

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